New York (HedgeCo.net) – Coinciding with the launch of the Mizuho-Eurekahedge Index, the first Mizuho Eurekahedge Indices Analysis Report has been released.
The report examines global hedge funds through the lens of the Mizuho-Eurekahedge Index, which gives a fresh perspective on the hedge funds industry. This is because the new index is what is known as ‘asset weighted’ and follows a new methodology, which is unique from existing hedge fund indices, including Eurekahedge’s very own ‘equal weighted’ indices.
Highlights include:
· The top 25 hedge funds in the Mizuho-Eurekahedge Index have outperformed 92% of all funds of hedge funds in the Eurekahedge Fund of Funds Index over their reported track record
· The largest funds with more than US$1 billion in assets form only 6% of the population in terms of number of funds, their assets account for 49% of the total assets in the industry
· Mizuho-Eurekahedge Index has outperformed DJ World Index by 33.3% since the inception (Jan 05)
· Since December 2004, the maximum drawdown of the hedge fund industry, as seen through the Mizuho-Eurekahedge Index, is 17.38%, while that of the DJ World Index stands at 54.38%
· Over the last 6½ years the top 25 hedge funds have produced annualized returns of 8.5% with a low volatility of only 5.5%
When compared to the underlying equity markets the Mizuho-Eurekahedge Index has witnessed better performance over the last six and a half years, with less than half the volatility and a low beta. (correlation to the markets). Total return for the index stands at 50.27% as opposed to a 17.12% gain in the DJ World Index since December 2004. Funds within the Mizuho-Eurekahedge Index have also provided significant downturn protection – in 2011 the index is down only 2.03% (September YTD) compared to an average 13.74% decline in global markets. Since December 2004, the maximum drawdown of funds within the Mizuho-Eurekahedge Index is 17.38%, while that of the DJ World Index stands at 54.38%. See Mizuho Eurekahedge Indices Analysis.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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